Williams Cos. Inc. Will sell its natural gas liquids business for C$1.35billion ($1.03 billion) to Calgary-based Inter Pipeline Ltd., as the Oklahoma pipeline company attempts to reduce its operations.
Williams expressed an interest in selling its Canadian oil pipeline and processing network months ago. It is now finalising the sale after a failed merger with Dallas-based Energy Transfer.
“We are proud of the tremendous businesses our Canadian team has built since we first began operating in Canada in 2002,” Williams President and CEO Alan Armstrong said in the announcement. “This transaction represents significant progress on a major component of the 2016 capital and financing plan we announced in January.”
The company is owned by Williams and its master-limited partnership business, Williams Partners. Williams gets $209 million from the sale; the partnership with receive $817 million.
The deal is expected to be finalised next year.